The measures announced on 8 July 2020 include the following—
• Job Retention Bonus
• Kickstart Scheme
• Temporary cut to VAT for food and non-alcoholic drinks
• Temporary cut to VAT for accommodation and attractions
1 Job Retention Bonus
The government will introduce a one-off payment of £1,000 to UK employers for every previously furloughed employee who returns to work and remains continuously employed through to the end of January 2021.
Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme (31 October 2020) and the end of January 2021. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July.
The unprecedented Coronavirus Job Retention Scheme (CJRS) has so far supported over one million employers to protect over 9 million jobs. The scheme has been open since March, and will wind down flexibly and gradually, supporting businesses until October. It is important that people who have been furloughed are supported back to work. It is beneficial for everyone, including the individual, to prevent skills from fading and to maintain strong employment relationships. Therefore, the government is introducing a new Job Retention Bonus to reward and incentivise employers who keep on their furloughed employees.
2 Kickstart Scheme
The government will introduce a new Kickstart Scheme in Great Britain, a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
3 Temporary cut to VAT for food and non-alcoholic drinks
From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.
4 Temporary cut to VAT for accommodation and attractions
From 15 July 2020 to 12 January 2021, to support businesses and jobs, the reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.
For further information on the advice and support available visit our Covid Hub.